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The uncertainty surrounding Britain’s terms for leaving the EU means unknown territory for businesses, including fleet management. How best can SMEs prepare for the times ahead?

We’re right in the middle of the Government’s customs union discussions, so any predictions about how Brexit will affect the fleet market are changeable. However, there are ways in which businesses can better prepare.

1 Be proactive

It might be tempting to see the negotiations out but planning is essential. Jennifer Bailey is founder of UK business Calla Shoes, which produces its products in Portugal.

She says: “For businesses that import and export across the EU, it’s essential to think how the new regulations will affect this, such as changes to tariffs, border controls and a possible delay in importing goods, which could result in a limited stock supply.”

Many companies are unsure of the cost impact that leaving the EU will have. So she says: “With this in mind I’m keeping overheads to a minimum and building reserves so that additional costs won’t be too much of a shock. I can’t take a risk on unexpected payouts.”

2 Review your supply chain

How does your supply chain integrate with the common market and the EU? Prof Michael Mayer, head of strategy and organisational division at the University of Bath School of Management, says: “Where significant linkages exist, review sensitivity to time delays – for example, through border check disruption in the short term, as well as greater bureaucratic hurdles – and look at price fluctuations and risk from divergence in standards.”

He also suggests reviewing skills and sales profiles of staff and applicants and exploring how these will be affected by various Brexit decisions (such as no deal, a comprehensive economic and trade agreement, or remaining in some form of customs union).

3 Cut controllable costs

Businesses should proactively start cutting management costs now, focusing on those that can be controlled. “Fuel is by far the largest contributor to overall vehicle operating costs,” says Alan King, president of payment provider Fleetcor UK. “Any potential adverse impact on pound-dollar FX [foreign exchange] will directly have an impact on oil prices and, ultimately, increase fuel prices for both businesses and consumers.”

4 Review your workforce

“The continued absence of any guidance on the process for obtaining settled status continues to leave EU nationals in limbo about their future,” says Chris Brazier, Chartered Institute of Personnel Development (CIPD) adviser and BP Collins business immigration lawyer. This is having a knock-on effect across the economy, particularly for SMEs that employ and heavily rely on EU workers.

SMEs should carry out an audit on the immigration status of their workers

As a minimum, SMEs should carry out an audit on the immigration status of their workers now to identify who may be caught by any new immigration controls and, in turn, which of those workers would be eligible to apply for settled status. Having a plan in place to assist, and hopefully protect, those employees will help to show that they are valued and help to maintain a robust and settled workforce that will continue to contribute to the growth and productivity of your business.

5 Use your data

Businesses could also be making good use of the data and the data capture tools available. Mr King says: “By analysing mileage, number and frequency of fuel stops and maintenance logs through comprehensive information management protocols, businesses can identify and rectify inefficiencies early on to reduce costs.”

Mr King also suggests that fleet managers could be harnessing telematics data to optimise routes taken and driver efficiency, as well as ensuring there is regular fleet maintenance procedure.

To find out how Volvo can help drive your business forward, please call 0345 600 4027 or visit volvocars.com